Does Builders Risk Cover Materials?

NAIC describes builders risk as including materials incidental to construction. Oregon’s guidance similarly refers to building supplies intended to become part of the structure, while calling out separate installation-floater protection for some transit and storage exposures. “Materials” does not necessarily include contractor tools, surplus inventory, or supplies owned by another party. Check the covered-property definition, ownership or insurable interest, project value basis, and any exclusions for property not yet incorporated into the building. Ask about storage and transit separately. The contract may require the owner or contractor to insure materials at different stages of ownership, so reconcile purchase orders, delivery terms, and the policy’s named insureds. A materials supplier’s transit coverage or a contractor’s installation floater could be relevant before incorporation, but ask who actually bears the loss. Check whether taxes, freight, and change orders are included in the declared project value.